Choosing alternative strategies is NOT a fill-in-the-style box approach. Our research has shown the dispersion of returns between the best and worst performers is up to four times greater in alternative strategies than in traditional long-only categories (see Dispersion in Alts).
Quantitative measures, like performance and other risk-adjusted statistics, can lead investors to chase performance, while the qualitative due diligence necessary to distinguish top managers can be incredibly time-consuming.
Many investors have turned to multi-strategy alternative solutions, causing Morningstar’s multi-alternative category to become the largest alternative category in terms of assets and number of funds. Unfortunately, a vast majority of the largest multi-alternative mutual funds are predominantly exposed to equity and credit risk factors — precisely the risks from which investors are trying to diversify away.
Learn more about how AlphaCore’s alternative solutions complement traditional portfolios with our AlphaCore Fact Sheet.
At AlphaCore, we build customized portfolios utilizing an open architecture methodology for advisors and institutional clients. The AlphaCore Absolute Fund is a streamlined way to access one of our liquid alternatives solutions. It is designed specifically to complement a balanced portfolio of stocks and bonds.
Investing in mutual funds involves risk including the possible loss of principal. Equity market-related swap contracts and options involve leverage risk, tracking risk and counterparty default risk. Option positions may expire worthless exposing the Fund to potentially significant losses.
ETFs and mutual funds are subject to investment advisory and other expenses, which will be indirectly paid by the Fund. As a result, the cost of investing in the Fund will be higher than the cost of investing directly in ETFs and mutual funds and also may be higher than other mutual funds that invest directly in common stocks and other securities.
The advisor’s dependence on its asset allocation and risk management strategies and judgments about the attractiveness, value and potential appreciation of particular securities and derivatives may prove to be incorrect and may not produce the desired results.
An investor should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing or sending money. This and other important information about the AlphaCore Absolute Fund can be found in the Fund’s prospectus. To reach AlphaCore Capital LLC please call 858-875-4100. Please read the prospectus carefully before investing. The AlphaCore Absolute Fund is distributed by Northern Lights Distributors, LLC., Member FINRA/SIPC. 4723-NLD-10/17/2016